Holiday Post: Bangladesh microfinance market has reached the maturity stage and the competition among MFIs has expanded. Competition among MFIs has not only created advantages such as easy access and reasonable interest-rates but also introduced complexities. said, Asaduzzaman Chowdhury, executive director of Gender & Environment Management Society-GEMS. Who has a long bearing experience of justice sector, local government strengthening advocacy and research. He is observer member of Lakshmipur DLAC. Chairman of Somonnoy Parishad, Urban Social Services at Lakshmipur. Organizing Secretary at National Anti-Tuberculosis Association of Bangladesh- NATAB. Deputy Governor of Rotary Club at Lakshmipur, session 2023-2024 and works of various social activities. In a written interview with Holiday Post on NGOs various sector.

Holiday Post: What are the facing about business current situation?

Asaduzzaman Chowdhury: We see that, one client takes credit from more than one institution for the same purpose and same time because branch offices of MFIs have no interconnected database about their clients. Whereas, commercial banks in Bangladesh have the Credit Information Bureau (CIB) and they can easily trace the previous and current credit history of the clients. But it is absent in the MF industry. As a result, the number of overlapping credits is growing day by day. It might grow systematic risk among the MFIs and blunt the basis of the microfinance sector in Bangladesh. These negative effects retreat not only on the MFIs, which are continuous struggling to retain their level of performance but also on the credit customers. These overlapped customers are facing very critical problems to repaying the credit amount to lending institutions. According this time 25% of microfinance institutional borrowers take credits from six or more than six separate financial institutions which ultimately guide to critical situation of repayment in the microfinance sector. The consequence of repayment crisis is a liquidity shortage which adversely influences the regular performance of MFIs. He said.

Holiday Post: Are you concerned about stability factor to plan your Activities? Why?

Asaduzzaman Chowdhury: Effective credit risk management can be resolves this crucial issue for the sustainable operation of MFIs. As a critical aspect and burning issue among the issues faced by the microfinance industry, credit risk management needs focal attention. A good number of Bangladeshi microfinance institutions are regularly fighting against credit recovery problem. Hence, the microfinance industry may be likely to face deadlock if there is a little decline in credit quality.

Holiday Post: What is the importance of economic Development in Bangladesh your Activities?

Asaduzzaman Chowdhury: Our micro credit plays a vital role in the socio-economic development in Bangladesh. Since micro credit is related with the root level of an economy, so it is so important for the financial market of any country. In our microfinance participant households are better able to ensure more employment on own farms due to microfinance. Micro credit helps to remove the poverty. We provide health education and service. Our field officer gives advice to the rural people to drink safe water, pre natal and post natal care, sanitation and housing. We also provide loans only those who are literate. Also we are giving emphasis on the rural poor women. There are strong evidences that, microfinance programs contribute to women's empowerment in decision making. We think that women are more responsible than the men to repay their loans. Such type of thinking make the micro finance institutes interested to provide loan to the women rather than men.

Holiday Post: Do you think the Micro-Credit policy regime here is good, or need to be improved?

Asaduzzaman Chowdhury: The Microcredit Regulatory Authority (MRA) has formulated draft guidelines to permit the MFIs, so that they can provide collateral-free loans of up to Taka 4 million for micro enterprises to boost the economy. I think, to make microcredit program more effective, different steps should be taken. My suggestion is that, how they can use the money in a productive way so that they can generate income from that would be a better idea. Microcredit program can include skill development training and workshops in their schedule to enable them in overcoming such barriers. Borrowers who have been taking loans for several years are likely to gain some mobility. Hence, it would be wise for microcredit program to help them maintain repayment schedule so that they don’t drop out as defaulters. Rather than assuming that loan repayment guarantees positive impact, attention should be given to the ways following which they are repaying loans.  Microcredit program will be more effective if clients’ individual needs are met more precisely. MFIs should to take care of several steps

Holiday Post: Country develops to need emphasized on micro-economy. What is your business initiative to develop of our economy and actions of micro economy?

Asaduzzaman Chowdhury: Its spectacular ascent since Grameen Bank's pioneering start in 1983 is a monument to the tenacious spirit of a people that overcome poverty and not succumbed to hardship. Grameen Bank, BRAC, ASA, and GEMS are not simply organizations. They've composed such powerful financial symphonies that their echoes can be heard from far beyond Bangladesh. Microfinance is the heart of a national revival. Let it be known that the microfinance miracle is not a passing fad; it is Bangladesh's everlasting symphony—a victorious homage to a nation's persistent pursuit of a more egalitarian, sustainable, and prosperous destiny.

Holiday Post; How to achieve goal to goal of your community group and what is your business strategy? Please details us?

Asaduzzaman Chowdhury: Income is treated as the economical and financial solvency of the borrowers. When a borrower achieves financial freedom then they can afford to fulfill all the household consumption. It will also give power to the borrowers for future consumption. A fixed and continuous income source ensures the basic needs of the borrowers and thus affects their daily life. In other words we can say that increase in income level ensures food, cloth, housing, medicine for the borrowers and their family members. When the borrower exceed a certain level of income after meeting all the household expenses and loan installments, then it leads to purchase the household assets like furniture and fixtures for the house, land and other fixed property or make savings.

Holiday Post: What is your special Suggestion to Micro finance industry in Bangladesh

Asaduzzaman Chowdhury:   First thinks is that, the major feature of the lines of credit and loans under microfinance is that collateral is rarely required. Many microfinancing institutions offer collateral-free financial services to businesses and individuals. Second, the borrowers in microfinance are small businesses or individuals with low income. The purpose is to provide financial assistance to people who do not have access to easy banking solutions and small businessmen or entrepreneurs. Third, microfinance institutions usually provide lines of credit and loans in smaller amounts. The amount may vary depending on factors like the type of business and the location. Four, the tenure of the loans under microfinance is usually short as an individual can repay the amount in smaller instalments. The borrowers repay the amount of the loan within the time period that micro-financing institutions decide and Five. Microfinance loans are for small businesses and low income group individuals. So the main objective of microfinancing institutions is to generate income for the businesses in undeveloped parts of the country.

Holiday Post: Tell us something about your present business overview.

saduzzaman Chowdhury: Gender & Environment Management Society (GEMS) Bangladesh is one of the various natural disaster prone countries in the world.  Firstly GEMS involved itself in local resource mobilization work for providing support to vulnerable people as to keep contribution in positive change of socio- economic sectors. Establish human rights and dignity of socio- people especially in the community women and children. It could also realize that for any sustainable development, some realistic programs with definite goals as well as perfect plans (participatory) have to chalked out. These programs should be backed credit support. It will require the endeavors of the persons involved. It is also necessary to enhance the skills of staff and target group members. We give priority to build up effective networking with different stakeholders as to get various supports.. Presently it has become the symbol of expectation for the poor, deprived and vulnerable people of local community.